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Compliance Glossary Term

Federal Lease

A government-issued agreement granting a company the right to explore or extract resources on federally managed land. Subcontractors working on these sites must meet stricter regulatory and documentation requirements. Expect additional compliance checks, environmental controls, and reporting obligations on federally leased projects.

Related Terms

Local Content Requirement

Compliance

A contractual or regulatory rule requiring subcontractors to hire local workers, source materials locally, or partner with regional firms. Non-compliance can disqualify you from bidding or trigger contract penalties. Common on projects funded by governments or national oil companies.

IEEPA (International Emergency Economic Powers Act)

Compliance

A U.S. federal law that grants the president broad authority to regulate or block international trade and financial transactions during a declared national emergency, which can directly affect subcontractors by triggering sudden tariffs on imported equipment and materials, disrupting cross-border project timelines, or restricting payments to and from American clients and primes. Field service companies working on U.S.-linked contracts or sourcing materials from affected countries should monitor IEEPA-related executive orders closely, as cost structures and contract terms can shift with little notice.

Osha (occupational Safety and Health Administration) Recordable Incident

Compliance

A work-related injury or illness that meets specific criteria requiring formal logging under OSHA regulations, including cases involving days away from work, restricted duties, medical treatment beyond first aid, or loss of consciousness — a metric that directly affects a subcontractor's safety record and can impact their eligibility for future contracts with operators and prime contractors.

Well Licensing

Compliance

A regulatory approval issued by provincial authorities before drilling or completing a well can begin. Subcontractors should confirm a valid licence is in place before mobilising, as work cannot legally proceed without it. Delays in licensing directly affect your crew scheduling and contract start dates.

RIGI (Régimen De Incentivo Para Grandes Inversiones)

Compliance

Argentina's large-investment incentive regime offering tax, customs, and currency stability benefits to qualifying mega-projects over USD $200 million. Subcontractors working under RIGI-registered operators may benefit from faster payment cycles and reduced import duties on equipment. Understanding RIGI status helps field service companies anticipate project timelines and negotiate contract terms.

API (American Petroleum Institute)

Compliance

The leading industry organisation that develops technical standards, safety protocols, and equipment specifications that subcontractors must follow when working on oil and gas projects. API certifications and compliance with API standards are often mandatory requirements in service contracts and can affect your ability to bid on projects.

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